Vehicle Dealer Negotiations and warranties

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networkn

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#207689 8-Jan-2017 21:59

Hi.

We have an interest in a few second hand vehicles, and I was wondering on peoples recent experiences. The last few we have spoken to have been pretty unnegotiable saying that with the internet sales, dealers need to be more competitive up front and therefore there isn't room to move much if any. Does anyone know if there is an average margin they have in a 40-50K car?

I also wanted to find out what the likely warranty situation is with a car purchased from a dealer, esp if that dealer is the opposite end of the country to us? I assume it's not expected for us to return it to them if anything went wrong with it? Are we protected assuming purchased personally from a dealer, under the CGA if we found a fault within say 6 months?

Thanks.

elpenguino

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#1700358 8-Jan-2017 22:04

cant comment on negotiations but for warranty you would probably have to purchase / negotiate for some kind of mechanical insurance so that you can use a repair agent nationwide.

Otherwise the dealer would be gambling on using their own mechanics and yes, you would have to take the car to them.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

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#1700366 8-Jan-2017 22:26

I bought my Land Rover from Archibalds in ChCh.

There were a couple of minor cosmetics and things I wanted tidied up and they were happy enough to get the work done by Armstrong Prestige in Wellington and settle the bill directly between themselves (I'm sure it was far lower than it would have been if I was settling it!!)

mattwnz

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#1700385 8-Jan-2017 23:20

I would expect the margins to be pretty healthy. I wouldn't be surprised if they make larger margins on second hand vehicles, vs new vehicles, as you can easily knock off a good percentage amount off the price of a new vehicle. A good guide to working out how much a used car is worth, is look for what they are selling for on trademe, both privately and through other dealers, to build up an excel table of price ranges. Negotiating is a skilled game. This is a good video on how to beat a car dealer https://www.youtube.com/watch?v=G5wMmq6-kNc . The tips in this video saved me thousands over what I would have paid. This is fo r the Oz market, but he NZ market is pretty similar. He also has a lot of other interesting videos.

Andib

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#1700403 9-Jan-2017 07:24

My friend who works in used sales for one of the euro car companies once told me they aim for 15-20% on cars 10k+ so they have room for negotiation but this may just be lot price and not take into account any internet discounts??

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NightStalker

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#1700445 9-Jan-2017 09:55

In the YouTube video linked by mattwnz it mentions using car brokers to compare with dealer offers and getting the best price. Are their any of these brokers in NZ that assist with private purchases. I'm looking at a new SUV sometime this year and have started evaluating options.

Coil

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#1700458 9-Jan-2017 10:12

Hey,

Recently you may remember i purchased a VW Passat V6 4Motion.
It was from a LMVD in Tauranga through a USell yard. You had input on my thread when i was freaking out wonder if the money would show up haha.

I had many problems and the car was a write off with in the first 3 weeks. I got my money back as the dealer offered a 1 month warranty.
Now im not too sure if its law to offer a warranty but i was going to buy another car through a dealer and when i said "Does it come with a warranty" i was promptly told no, The guy didnt seem reliable so i didnt buy the vehicle.

Have a look here: https://www.consumer.org.nz/articles/car-buyers-rights http://www.cab.org.nz/vat/tt/bs/pages/buyingfromadealer.aspx
I didnt notice it saying a LMVD has to provide a warranty but the snip below suggests they do as required by the CGA or FTA.

When things go wrong

Your first step is to discuss the problem with the trader. Traders have to comply with both the Consumer Guarantees Act and the Fair Trading Act.
If the problem isn’t serious, the trader can choose what remedy to give you. They can either fix the problem, or replace the vehicle for free. They have to act within a reasonable time.
If the problem is serious – that is you wouldn’t have bought the vehicle if you had known the fault existed – then you can choose whether to accept a repair, a replacement or a refund.

networkn

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#1701185 10-Jan-2017 23:09

I got an A4 Avant 2015 which had $47K on the sticker, down to 44, including towbar, installation of Anchor Bolts, Freight to Auckland from CHCH and ORC.

I got offered a 60K I40 Limited for $35K incl trade in, was very hard to turn that down, but it was so massive. We would have taken that if they had taken my offer to the dealer principal before I left and ended up at Audi that same day.

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mattwnz

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#1701195 11-Jan-2017 01:09

TimA:

If the problem is serious – that is you wouldn’t have bought the vehicle if you had known the fault existed – then you can choose whether to accept a repair, a replacement or a refund.

How far can you push them on a replacement in that situation? I mean if they offer to refund your money, but you know that your money won't be able to buy you the same car (eg you got a great deal or the prices have gone up), do they have to provide a replacement if you request it?